Netlink Nbn Trust · SGX:CJLU
Netlink Nbn Trust — Investor Presentation (May 2019)
17 slides from Netlink Nbn Trust's investor presentation, May 2019
Slide 1: Investor Presentation May 2019
Investor Presentation May 2019 The joint issue managers of the initial public offering and listing of NetLink NBN Trust were DBS Bank Ltd., Morgan Stanley Asia (Singapore) Pte., and UBS AG, Singapore Branch. The joint underwriters of the initial public offering and listing of NetLink NBN Trust were
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase or subscription of securities, including units in NetLink NBN Trust (the “Trust” and the units in the Trust, the “Units”
Slide 3: Financial snapshot
Financial snapshot1 Revenue Cash Balance DPU S$354m S$149m 4.88 cents ▲ 3.3%2 ▲ 5.2%2 EBITDA Gross Debt DPU Yield 3 S$248m S$636m 5.9% ▲ 3.2%2 Profit After Tax S$77m 1 FY19 2 Variance versus IPO Projection ▲ 17.8%2 3 Based on the unit price of S$0.83 at 31 Mar 2019 3
Slide 4: Fibre is 'future proof'
Fibre is ‘future proof’ Fibre is the About 9 out Fibre Fibre supports Fibre medium of of 10 homes broadband wireless access capacity is choice for in Singapore prices are solution such scalable and delivering has a fibre lower in as WiFi can support broadband termination Singapore hotspots and futur
Slide 5: Our network
Our network 1,327,732 46,207 1,587 End-Users Connections End-Users 5
Slide 6: A resilient business model
A resilient business model RAB Revenue Non-RAB Revenue NLT Residential Non- NBAP and Ducts and Installation Diversion Co-Location Central Connections Residential Segment Manholes Related Revenue and Other Office Connections Fibre Service Revenue Revenue Revenue Connections Revenue % of FY19 58.5% 10
Slide 7: Fibre connections
Fibre connections Residential Non-Residential Non-Building Address Points ’000 ’000 1,400 50 1,800 47.3 46.2 1,327.7 43.9 1,587 1,592 1,600 1,300 1,278.3 40 38.5 1,400 1,192.5 1,200 1,200 30 1,000 1,094.8 IPO Projection IPO Projection IPO Projection 1,100 835 800 20 IPO Projection IPO Projection IPO
Slide 8: FY19 Profit & loss statement
FY19 Profit & loss statement FY19 Projection(1) Variance (%) Revenue was higher due S$’000 to higher residential connections revenue, Revenue diversion revenue, and 353,580 342,214 3.3 ducts and manholes service revenue. This was partially offset by lower EBITDA 247,876 240,178 3.2 than projected in
Slide 9: Robust balance sheet
Robust balance sheet1 S$149m S$636m S$3,030m Cash Balance Gross Debt Net Assets 2.6x 13.5x 77.7 cents Gross Debt/EBITDA EBITDA Interest Net Assets per Unit Cover • Interest rate exposure fully hedged • Stable capital structure with high debt headroom to fund future capex 1 As at 31 Mar 2019 9
Slide 10: Attractive distribution yield with low risk
Attractive distribution yield with low risk 7 5.9 (1) 6 Distribution Yield (%) 5 4.6 4.2 4 3 2.1 2 1 0.6 0 NBN Yield 10-YR Singapore Govt Bank 12-month Fixed STI Yield FTSE ST REIT Yield Bond Deposit Rate Source: Bloomberg as at 31 Mar 2019 • Total DPU of 4.88 Singapore cent for FY19 exceeded IPO DP
Slide 11: Our focus for FY20
Our focus for FY20 Residential Non-Residential NBAP & Segment Migration of cable Partnership with Denser network – adding end-users to fibre Requesting Licensees capacity, flexibility and Residential homes Focus on SMEs resilience not on fibre New product offerings New households Pre
Slide 12: Well-positioned to deliver long-term value and growth
Well-positioned to deliver long-term value and growth Resilient Critical Sole nationwide business model infrastructure provider of with transparent, enabling residential fibre predictable and Singapore’s Next network in regulated Gen NBN Singapore revenue stream Well-positioned to Well-positioned to
Slide 13: Thank You
Thank You
Slide 14: Supplemental Business Information
Supplemental Business Information
Slide 15: NetLink Trust's pricing for its services
NetLink Trust’s pricing for its services Pricing of NLT’s principal services are regulated by IMDA • IMDA shall hold a review of pricing terms every five years following the last price review, or at any such time as IMDA may consider appropriate (which may include a mid-term review in the third year
Slide 16: NetLink Trust's pricing for its services
NetLink Trust’s pricing for its services Framework for RAB Based Pricing Model Methodology for RAB based pricing model 1 1 • Base year of the RAB is 2012 RAB WACC – Assets purchased up to 2012 are valued at 2012 Cost Base prices for RAB – Assets purchased after 2012 are valued at actual cost 2 2 • N
Slide 17: Understanding the ICO pricing framework
Understanding the ICO pricing framework Illustrative Worked Example How Does EAC Work for 1 Year’s Outflow on Capex? Assuming Opening RAB of S$1Bn, WACC of 7.0% and Asset Useful Life of 10 Years EAC (S$ MM) RAB (S$MM) 300 1,000 750 200 142 142 142 142 142 142 142 142 142 142 500 34 26 18 9 65 60 54